Loading/Unloading vehicles (lumping)

Scope

The Motor Carrier Act of 1980 addressed the problem of loading, unloading, and lumping, and the Interstate Commerce Commission Termination Act of 1995 retained the portion of the law that addressed this issue.

Regulatory citations

• 40 CFR 376.12 — Lease requirements
• 40 CFR 386 Appendix B — Penalty Schedule: Violations and Monetary Penalties

Key definitions

• Bill of lading: An agreement between a shipper and a carrier governing their relationship with respect to the transportation of goods. It is the contract of carriage. As a contract, it names the parties involved and locations, defines the specific rate or charge for the transportation, and provides information regarding the limits of the carrier’s liability for damaged or lost goods. A contract carrier that has a specific agreement with a shipper is not required to use a bill of lading under 373.101.
• Coercion: An act of threatening a driver by a motor carrier, shipper, receiver, or transportation intermediary, or their respective agents, officers or representatives, to withhold business, employment or work opportunities from, or to take or permit any adverse employment action, to induce the driver to violate one or more regulations, which the driver identified at least generally as a violation.
• Common carrier: A carrier that hauls cargo or passengers for any customer without a contract or master agreement. When acting as a common carrier, the goal is to obtain higher-paying loads from load boards on a load by load basis. All charges and conditions are subject to a bill of lading and rate sheet as agreed upon for specific loads.
• Contract carrier: A carrier that has a contractual relationship with shippers, brokers, or freight forwarder to haul freight with the intent of creating more predictable load volumes on targeted freight lanes. The contract operates as a master agreement and covers rates, claims handling, accessorials, including loading or unloading charges. fuel surcharges, redelivery fees and any other charge that is in addition to the linehaul mileage rate. Individual rate sheets may also be issued for each load subject to the master agreement on legal requirements.
• Lumper: A day laborer employed to handle cargo.

Summary of requirements

In the past, common carriers were required by the now defunct Interstate Commerce Commission to file tariffs, or rates with the Commission, listing the fees assessed for motor carriage and related services. If the carrier included loading or unloading in the services it provided the shipper or receiver, the charge for such services was to be included in the tariff. This service was negotiated with the receiver or shipper, and they usually assumed it was included in the rate.

Contract carriers, who did not file tariffs with the Commission, were required to include loading and unloading arrangements in the contract with the shipper.

Today, tariff filing is not required by a vast majority of carriers; however, the issue of loading or unloading must still be addressed. Exactly who is responsible should be negotiated and agreed upon by the shipper and carrier in advance. The information should be in writing. This requirement can be met in several ways:

• The information may be incorporated into the “tariff” or “rate sheet” published by the carrier, and available to the shipper upon request.
• The responsibility for loading/unloading may be noted on the bill of lading issued by the carrier.
• A carrier operating under contract as a contract carrier may include the loading/unloading information within the contract with the shipper.

Leases and contracts. The law is clear with regard to leased vehicles, and contracts entered into by owner-operators. The written lease agreement or contract must contain a clear statement of who is responsible for loading and unloading: the shipper, receiver, or the driver of the vehicle. (49 CFR 376.12(e))

Legal requirements:

• The issue of loading and unloading, and compensation for this task, should be included in any lease agreement, contract, tariff, or rate sheet used by a motor carrier. Ideally, the arrangement agreed upon by the carrier and shipper or receiver should appear on the bill of lading as well.
• Any shipper or receiver requiring a trucker to hire help to load or unload must either furnish the help, or pay the cost of the help.
• It is illegal to force or attempt to force a driver to load or unload, or to force the driver to employ someone else to load or unload. Drivers may hire someone to load or unload, but they may not be forced to do so under the Act. If the driver is required by the shipper or receiver to hire someone to load or unload, the shipper or receiver must compensate the driver.
• The intention of the provision is to give drivers the option of loading or unloading themselves, or choosing to pay for assistance. Nothing in the law prohibits drivers from loading or unloading the vehicle themselves.
• The FMCSA has recently added penalties for violation of commercial regulations (CRs) in Part 386, Appendix B (g)(14). Regarding loading/unloading, the regulations says:
  • A person who knowingly authorizes, consents to, or permits a violation of 49 U.S.C. 14103 relating to loading and unloading motor vehicles or who knowingly violates subsection (a) of 49 U.S.C. 14103 is liable for a penalty of not more than $16,000 per violation.

Current law. The Interstate Commerce Commission Termination Act of 1995:

• Section 14102 — Leased motor vehicles:
  • (b) Responsible Party for Loading and Unloading: The Secretary shall require, by regulation, that any arrangement, between a motor carrier of property providing transportation subject to jurisdiction under subchapter I of chapter 135 and any other person, under which such other person is to provide any portion of such transportation by a motor vehicle not owned by the carrier shall specify, in writing, who is responsible for loading and unloading the property onto and from the motor vehicle.
• Section 14103 — Loading and Unloading Motor Vehicles:
  • (a) Shipper Responsible for Assisting: Whenever a shipper or receiver of property requires that any person who owns or operates a motor vehicle transporting property in interstate commerce (whether or not such transportation is subject to jurisdiction under subchapter I of chapter 135) be assisted in loading or unloading such vehicle, the shipper or receiver shall be responsible for providing such assistance or shall compensate the owner or operator for all costs associated with securing and compensating the person or persons providing such assistance.
  • (b) Coercion Prohibited: It shall be unlawful to coerce or attempt to coerce any person providing transportation of property by motor vehicle for compensation in interstate commerce (whether or not such transportation is subject to jurisdiction under subchapter I of chapter 135) to load or unload any part of such property onto or from such vehicle or to employ or pay one or more persons to load or unload any part of such property onto or from such vehicle; except that this subsection shall not be construed as making unlawful any activity which is not unlawful under the National Labor relations Act or the Act of March 23, 1932 (47 Stat. 70; 29 U.S.C. 101 et seq.) commonly known as the Norris-LaGuardia Act.”

Violations. Penalties for violations have also been brought forward from previous law and retained in the ICC Termination Act (and recently added to 49 CFR 386 Appendix B (g)(14) by the FMCSA). The penalties contained in the Act are as follows:

• Section 14905 — Penalties for violations of rules relating to loading and unloading motor vehicles:
  • (a) Civil penalties: Whoever knowingly authorizes, consents to, or permits a violation of subsection (a) or (b) of section 14103 or who knowingly violates subsection (a) of such section is liable to the United States for a civil penalty of not more than $16,000 for each violation
  • (b)Criminal penalties: Whoever knowingly violates section 14103 (b) of this title shall be fined under title 18 or imprisoned not more than 2 years, or both.